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Aug16

sharing of tips

is it legal in Arizona to tell servers that they must share with support staff a certain % of their total sales. then they would take say 5% of sales and that dollar amount would then be split 50% to busser 40% to runner and 10% to floor busser???

Yes, per the Fair Labor Standards Act, tip pools are legal with a few stipulations. First, only employees who are usually and customarily tipped (such as waiters and waitresses, bussers, etc.) may be included in the pool. There is no limit to the contribution amount or percentage that may be required, but the employer must notify tipped employees of the required tip pool contribution amount or percentage. Also, if the employer takes a tip credit towards the minimum wage requirement, only the amount actually received by the employee counts towards the tip credit amount. Finally, tips belong to the employee/employees and employers may not use tips for any purpose other than as a credit against the minimum wage requirements.

This entry was posted on Saturday, August 16th, 2014 at 2:03 pm and is filed under
Compensation, Human Resources Management.
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